Disability Representative Organisations are calling for changes to the Disability Support Pension (DSP) that would allow recipients to keep more of the money they earn when taking on paid work. At the Jobs Summit, the Government committed to providing a temporary upfront $4000 income bank credit to allow Age Pension recipients to earn more before their pension is reduced. This means that Age Pension recipients can retain up to $11,800 this financial year before losing any of their pension.
While we welcome the partnership with the Business Council of Australia to develop an Economic Initiative Pilot to increase and improve employment pathways for people with disability, as well as the immediate action to resolve issues with the taper rate for those on the Age Pension – more needs to change.
“It doesn’t make sense that people on the Age Pension will see immediate change when the same issues exist for people on the Disability Support Pension and long-term high unemployment rates of people with disability require immediate action” said Ms Catherine McAlpine, CEO of Inclusion Australia.
The way the DSP is currently structured, single recipients lose 50 cents for every dollar earned above $190 per fortnight.
“This is acting as a disincentive for people with disability to take on more work. It doesn’t make sense to retain this disincentive when employers are crying out for staff” said Ms Mary Mallett, CEO of Disability Advocacy Network Australia.
To read the full Joint Media Release visit the PWDA website.